Discussion:Employees without SS
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Discussion Forum Index --> Tax Questions --> Employees without SS
Poorhouse Road (talk|edits) said: | 17 January 2007 |
| I have a client who hired two employees in the third quarter. They were given W-7s to file to get their working number from the IRS. To date they have not received their numbers. Quarterly reports have been filed with their wages included. Question? How do we submit the W2s and W3 without knowing their numbers. Do we file corrected 941s and back their wages out? Do we resubmit W7s for them? Do we send in the W2s without a number for them? | |
Mark Eason (talk|edits) said: | 17 January 2007 |
| File the W-2's, etc. without the SS#. Attach a letter explaining all of the steps you went thru to get SS#. Be prepared for a nasty letter from the IRS. The employees will then have the IRS set their withholding. Make sure you have their I-9's on file. | |
Poorhouse Road (talk|edits) said: | 17 January 2007 |
| Thanks Mark. | |
| 17 January 2007 | |
| Without the SS#, aren't you required to withhold minimum of 20% for federal income tax. | |
Poorhouse Road (talk|edits) said: | 17 January 2007 |
| Good point Dr but at this late stage I think the client will opt to let the IRS make an issue of that. Are there stiff penalties for not having done that? | |
| 17 January 2007 | |
| I am confused:
A W-7 is a form not entitling the employee to "work" in the US. They need a SS# for that. The W-7 should be for tax return reporting only...this is an ITIN and not a social and cannot be used to replace the W-4 for SS purposes.... Employees need a Social Security number to report wages...did the employer withhold SS & Medicare taxes as well as FWT? | |
Bottom Line (talk|edits) said: | 18 January 2007 |
| Since employees haven't provided info, makes me suspect they can't legally work in US. Stiff fines for that. Client needs to push the issue. Apparently doesn't do any background checks either. | |
| 18 January 2007 | |
| Guys, I'm in Florida and there are is a huge number of ilegal aliens working here (and of course also in CA, GA, NC...)in all sorts of jobs but mainly construction. They even get a W-2. I was told they can get a refund without a SS#. They just have to file a W7 at he local IRS office and get their ITIN. On the other hand, there is a lot of employers who give these people 1099s to save payroll taxes. | |
Bottom Line (talk|edits) said: | 18 January 2007 |
| Don't know how they could get a refund without a SSN. Have you seen this done? | |
| 18 January 2007 | |
| I am in Florida too and they can get a refund when they fabricate SS#'s...it happens all the time here. Unfortunately, IRS is doing little to combat the work to keep illegal aliens from working in the US. I think many are giving 1099's because if the individual has an ITIN he does not have a SS# and then CAN'T w/h pr taxes, so give him a 1099 and let him file that with his ITIN...
The question though was how to file the w2's when they don't match the 941's. They won't because they don't have SS#'s....do a 941C, make the w-2's what they are and refund the prx w/h from the employees because they are not legal to work or get prx w/h in the US... | |
| January 18, 2007 | |
| It's all about timing. An illegal buys an SS# on the street, uses it for an employer for a year, or even two, before IRS notifies the employer that the number's no good...and with the W2 in hand, they can march into the neighborhood tax mill and get cash in hand upon exit! | |
| 19 January 2007 | |
| It pisses me off....but better to be ***ed off than...well you know what I mean...sorry guys had a bad week.... | |
